Riksbank examiner: Some weaknesses in monetary policy, calls for exchange rate investigation

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Riksbank examiner: Some weaknesses in monetary policy, calls for exchange rate investigation
Photo: Tomas Oneborg / SvD / TT

External reviewers Professor Morten Ravn and senior researcher Carolyn Wilkins want to see an investigation into the Swedish exchange rate mechanism. They also believe that there have been “certain weaknesses” in the Swedish Central Bank’s monetary policy.

They believe that the Swedish Central Bank should develop how "unconventional monetary policy tools" are evaluated, according to a press release from the Riksdag.

Monetary policy from 2015 to 2024 has been reviewed by two researchers, who submitted their conclusions to the Riksdag's Finance Committee.

According to the investigators, it is "obvious" that, despite the Swedish Central Bank's good monetary policy reputation, there have been "certain weaknesses".

Among other things, they point to the size of the support purchases made by the Swedish Central Bank during the period, and to "insufficient risk analyses and shortcomings in the interaction between monetary and fiscal policy."

They believe that there is a need for continued development of the monetary policy framework and better coordination of work on financial stability. They also want to see an investigation into Sweden's exchange rate arrangements.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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